Coinbase reportedly plans to discontinue support for certain stablecoins in the European Union (EU) by the end of the year.
A spokesperson for the cryptocurrency exchange told Bloomberg that the exchange plans to delist stablecoins in Europe that are not compliant with the EU’s Markets in Cryptocurrency Regulation (MiCA).
“In light of our compliance efforts, we plan to restrict the provision of services to EEA users related to stablecoins that do not meet MiCA requirements by December 30, 2024.”
MiCA provides rules covering the supervision of crypto assets, consumer protection, and environmental protection. The bill includes measures aimed at reducing financial crimes such as market manipulation, money laundering and terrorist financing.
MiCA also puts stablecoin issuers under the jurisdiction of the European Banking Authority and requires them to hold sufficient liquidity reserves. Part of the bill targeting stablecoins will take effect in June, while the rest will take effect in December.
Coinbase becoming MiCA compliant could mean dropping support for USDT on Tether, the top stablecoin by market cap.
USDC, the second largest stablecoin, became compliant with this law this summer.
Coinbase and stablecoin company Circle jointly founded USDC in 2018 and jointly managed assets through Center Consortium until last year.
Last August, Circle CEO Jeremy Allaire announced that he would be moving all USDC governance and operational responsibilities in-house to streamline management of the stablecoin.
Coinbase announced at the time that it would purchase a stake in Circle.
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